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Morganton Manufacturing Company makes one product and it provided the following information to help prepare the master budget:

- The budgeted selling price per unit is P70. Budgeted unit sales for June, July, August, and September are 8,400, 10,000, 12,000, and 13,000 units, respectively. All sales are on credit.
- Forty percent of credit sales are collected in the month of the sale and 60% in the following month.
- The ending finished goods inventory equals 20% of the following month’s unit sales.
- The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost P2.00 per pound.
- Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month.
- The direct labor wage rate is P15 per hour. Each unit of finished goods requires two direct labor-hours.
- The variable selling and administrative expense per unit sold is P1.80. The fixed selling and administrative expense per month is P60,000.

Required:

1. What are the budgeted sales for July?
2. What are the expected cash collections for July?
3. What is the accounts receivable balance at the end of July?
4. According to the production budget, how many units should be produced in July?
5. If 61,000 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?
6. What is the estimated cost of raw materials purchases for July?
7. In July what are the total estimated cash disbursements for raw materials purchases? Assume the cost of raw material purchases in June is P88,880.
8. What is the estimated accounts payable balance at the end of July?
9. What is the estimated raw materials inventory balance at the end of July?
10. What is the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced
11. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is P10 per direct labor-hour, what is the estimated unit product cost?
12. What is the estimated finished goods inventory balance at the end of July?
13. What is the estimated cost of goods sold and gross margin for July?
14. What is the estimated total selling and administrative expense for July?
15. What is the estimated net operating income for July?

Respuesta :

sanadahamed123456789

Answer: So, the estimated net operating income for July is P22,000. would aprecciate brainliest :D

Explanation: Morganton Manufacturing Company makes one product and it provided the following information to help prepare the master budget:

- The budgeted selling price per unit is P70. Budgeted unit sales for June, July, August, and September are 8,400, 10,000, 12,000, and 13,000 units, respectively. All sales are on credit.

Let's start calculating:

Budgeted Sales for July:

July sales = 10,000 units

Expected Cash Collections for July:

June sales = 8,400 units

July sales = 10,000 units

Cash collections for July = (0.40 * 8,400 * P70) + (0.60 * 10,000 * P70)

Cash collections for July = (0.40 * 8,400 * 70) + (0.60 * 10,000 * 70)

Calculating:

Cash collections for July = (2,352,000) + (4,200,000) = 6,552,000

Accounts Receivable Balance at the end of July:

Accounts receivable balance = 60% of July sales (10,000 units)

Accounts receivable balance = 0.60 * 10,000 * P70

Calculating:

Accounts receivable balance = 0.60 * 10,000 * 70 = 420,000

Units to be Produced in July:

Ending finished goods inventory for August = 20% of August sales = 20% of 12,000 units

Units to be produced in July = 20% * 12,000 units

Calculating:

Units to be produced in July = 0.20 * 12,000 = 2,400 units

Pounds of Raw Materials to be Purchased in July:

Raw materials needed for production in August = 61,000 pounds

Raw materials purchases in July = (Raw materials needed for August / 0.90)

Raw materials purchases in July = 61,000 / 0.90

Calculating:

Raw materials purchases in July = 67,777.78 pounds

Estimated Cost of Raw Materials Purchases for July:

Cost of raw materials purchases = (Pounds of raw materials to be purchased in July * Cost per pound)

Cost of raw materials purchases = 67,777.78 pounds * P2.00

Calculating:

Cost of raw materials purchases = 135,555.56

Total Estimated Cash Disbursements for Raw Materials Purchases in July:

Given that the cost of raw material purchases in June is P88,880 and considering the payment terms, we can calculate the cash disbursements for July.

Cash disbursements for July = 70% of July raw materials purchases

Calculating:

Cash disbursements for July = 0.70 * 135,555.56 = 94,888.89

Estimated Accounts Payable Balance at the end of July:

Accounts payable balance = 70% of July raw materials purchases

Accounts payable balance = 0.70 * 135,555.56

Calculating:

Accounts payable balance = 94,888.89

Estimated Raw Materials Inventory Balance at the end of July:

Raw materials inventory balance = 10% of August raw materials production needs

Raw materials inventory balance = 0.10 * 61,000 pounds

Calculating:

Raw materials inventory balance = 6,100 pounds

Total Estimated Direct Labor Cost for July:

Direct labor cost = (Number of units produced in July * Direct labor hours per unit * Direct labor wage rate)

Direct labor cost = 2,400 units * 2 hours * P15 per hour

Calculating:

Direct labor cost = 72,000

Estimated Unit Product Cost:

Since there's no fixed manufacturing overhead and the variable manufacturing overhead is given, the unit product cost would be the sum of direct materials, direct labor, and variable manufacturing overhead costs per unit.

Unit product cost = Direct materials cost per unit + Direct labor cost per unit + Variable manufacturing overhead cost per unit

Given:

Direct materials cost per unit = 5 pounds * P2.00 per pound

Direct labor cost per unit = P15 per hour * 2 hours

Variable manufacturing overhead cost per unit = P10 per direct labor-hour * 2 hours

Calculating:

Direct materials cost per unit = 5 * 2 = 10

Direct labor cost per unit = 15 * 2 = 30

Variable manufacturing overhead cost per unit = 10 * 2 = 20

Unit product cost = 10 + 30 + 20 = P60

Estimated Finished Goods Inventory Balance at the end of July:

Finished goods inventory balance = Ending finished goods inventory for August = 2,400 units

Estimated Cost of Goods Sold and Gross Margin for July:

Cost of goods sold = (Units sold in July * Unit product cost)

Gross margin = (Total sales revenue - Cost of goods sold)

Given:

Units sold in July = 10,000 units

Unit product cost = P60

Calculating:

Cost of goods sold = 10,000 * 60

Gross margin = (10,000 * 70) - (10,000 * 60)

Cost of goods sold = 600,000

Gross margin = 700,000 - 600,000 = 100,000

Estimated Total Selling and Administrative Expense for July:

Total selling and administrative expense = Fixed selling and administrative expense + (Units sold in July * Variable selling and administrative expense per unit)

Total selling and administrative expense = 60,000 + (10,000 * 1.80)

Calculating:

Total selling and administrative expense = 60,000 + (10,000 * 1.80) = 60,000 + 18,000 = 78,000

Estimated Net Operating Income for July:

Net operating income = Gross margin - Total selling and administrative expense

Net operating income = 100,000 - 78,000

Calculating:

Net operating income = 22,000

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